Specific Self Employment Expenses: What You Can & Cannot Claim

When you’re self-employed in the UK, HMRC allows you to deduct certain costs from your income before calculating your tax bill. These are known as allowable business expenses. Knowing what qualifies can significantly reduce your taxable profit — but getting it wrong can lead to HMRC penalties.

The Rule: Wholly and Exclusively

For an expense to be allowable, it must be used wholly and exclusively for business purposes. If something is partly for personal use, you can only claim the business portion.

Common Allowable Business Expenses

Some of the most frequent allowable business expenses include:

• Office costs: stationery, phone bills, software, and internet used for work.
• Travel costs: fuel, parking, train or bus fares (but not daily commuting to the same workplace).
• Clothing: uniforms or protective clothing needed for your work.
• Staff costs: salaries, subcontractors, employer NI, and pensions.
• Marketing: website costs, advertising, and business cards.
• Training: courses that maintain or update existing skills.
• Professional fees: accountant, solicitor, or bank charges for business accounts.

What You Cannot Claim

Not every expense is allowed. Examples include:

• Personal rent, clothing, or food
• Fines or penalties
• Costs that have no clear business purpose